Besides achieving significant improvements in administrative reform, Hanoi also takes the top spot nationwide in developing e-government and high technologies, which are key to attracting quality foreign direct investment (FDI), a veteran expert has said.
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Many leading universities and research institutions are located in Hanoi, which are the foundation for the city to target projects with high added value using future technologies from the Fourth Industrial Revolution, Mai said.
Mai added that Hanoi should promote investments from multinational corporations and gain a better understandings of their business strategies, as well as the possibilities of investing in Vietnam.
According to the expert, who undertook many posts at the Ministry of Planning and Investment, an increase in the capital inflow to Hanoi is part of the expansion strategy of FDI enterprises in Vietnam. For many years, Vietnam is considered a country with vast opportunities, thanks to the country's extensive integration in the global economy and its participation in a number of free trade agreements.
In this context, cities and provinces such as Hanoi with high level of infrastructure development, appropriate investment policies and support for enterprises would gain a head start in attracting FDI among others.
Recently, Hanoi has been focusing in facilitating investment in a professional manner through the establishment of trade facilitation centers and meetings between the local government and investors, Mai stated.
Moreover, there has been significant improvement in administrative reform, while the city also takes the top spot nationwide in developing e-government and high technologies.
"These are decisive factors to ensure investors' long-term commitments," he noted.
Nevertheless, Hanoi still has to address some shortcomings, including the lack of consistency in infrastructure development. Mai also pointed to the limited capabilities of the city's supporting industries, shortage of skilled labor force, among others.
Mai recommended that Hanoi should be more selective in attracting FDI in the coming time, ensuring a more efficient and quality capital inflow. In the context of the Fourth Industrial Revolution, it is essential for the city to address the issue of lacking high qualified human resources, which is key for a long-term and sustainable development.
As of June 2018, Hanoi had 4,300 active projects with total registered capital of over US$33.38 billion, according to the local government. In 2016, 2017 and the first six months of 2018, US$12.46 billion was attracted, equivalent to 59% of the total FDI attracted in the 1989 - 2015 period. With the total FDI capital of around US$5.9 billion in the first six months of 2018, Hanoi has claimed the first place in FDI attraction nationwide.
Nguyen Duc Chung, chairman of the Hanoi People's Committee, said that FDI is an important source of capital for social investment, accounting for 10 - 15% on average of social investment and contributing to the city's high GRDP growth over the past years (averaging 7.11% annually).
At the same time, it is the FDI sector that has created stronger competition pressure in each sector, motivating domestic enterprises to innovate technology as well as enhance the economy's competitiveness, he added.
